GET DAILY SIGNALSFranklin Covey (FC) Reports Mixed Q4 Fiscal 2026 Results With EPS Beat
Key Takeaways
- Franklin Covey reported fourth quarter fiscal 2026 revenue of $70.0 million, down 2% from $71.2 million a year earlier and slightly below the consensus estimate of roughly $72.2 million.
- Net income rose to $7.1 million, up from $4.4 million in the prior-year quarter, while diluted earnings per share came in at $0.62, above the consensus estimate of $0.59.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, and certain other items) increased 9% year over year to $12.8 million.
- Full fiscal 2026 revenue of $261.5 million declined 2% but landed within the company's updated guidance range, with Adjusted EBITDA of $28.9 million.
- Leading indicators strengthened: consolidated deferred revenue rose 4% to $116.1 million, and subscription and contractually committed services invoiced amounts grew 9%.
Earnings Context and Why It Matters
Franklin Covey, a global leadership and organizational performance firm, closes its fiscal year each August, making this fourth quarter report a window into both the quarter itself and the full fiscal 2026 picture. The company has been navigating a transitional period marked by softer reported revenue as it rebuilds its go-to-market engine. For investors, the key tension has been between headline sales declines and improving underlying commercial momentum. This report matters because it shows whether Franklin Covey's investment in people, solutions, and multi-year contracts is translating into durable, higher-margin growth. Management's fiscal 2027 outlook, anchored by rising subscription invoicing and deferred revenue, gives the market a clearer read on the path back to top-line expansion. I also checked this using Tickeron's AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Results
For the fourth quarter ended August 31, 2026, Franklin Covey reported revenue of $69.96 million, down 2% from $71.2 million in the prior-year quarter and modestly below the consensus estimate of approximately $72.2 million. Net income climbed to $7.1 million from $4.4 million a year earlier, while diluted earnings per share reached $0.62, beating the consensus estimate of $0.59.
Adjusted EBITDA increased 9% to $12.8 million, with an Adjusted EBITDA margin of 18.3% versus 16.4% a year ago, reflecting disciplined cost management. For full fiscal 2026, revenue totaled $261.5 million, down 2% year over year and within the company's revised guidance range. Full-year Adjusted EBITDA was $28.9 million, within both original and narrowed guidance. Notably, consolidated subscription and contractually committed services invoiced amounts grew 9% to $165.1 million, and deferred revenue rose 4% to $116.1 million. From what I see, these underlying metrics point to a more stable foundation than the top-line figures alone suggest.
Market Reaction and Investor Sentiment
Franklin Covey's fourth quarter results delivered a mixed message: earnings per share exceeded expectations while revenue fell short of consensus. Historically, the stock has reacted to the balance between reported sales momentum and forward-looking subscription indicators, and this quarter highlighted both sides. The earnings beat, driven largely by lower selling, general, and administrative (SG&A) costs and stronger operating income, signals improving profitability. At the same time, the revenue miss reflects ongoing softness in Enterprise division sales, where management acknowledged that certain large deals did not close within fiscal 2026. Investor sentiment is likely to focus on whether the 9% rise in subscription invoicing and 4% growth in deferred revenue convert into reported revenue gains in the year ahead. I’m watching this closely as the stock digests the details.
Forward Outlook and Key Factors to Monitor
Looking ahead, management expects fiscal 2027 to mark a return to growth in reported revenue, Adjusted EBITDA, and cash flow, with Adjusted EBITDA projected to grow faster than revenue. This outlook is underpinned by several leading indicators investors should track closely.
First, watch subscription and contractually committed services invoicing. An 18% increase in Enterprise division invoiced amounts and a 17% rise in Enterprise North America deferred revenue suggest a building revenue pipeline that should convert as performance obligations are satisfied.
Second, monitor the company's expanding sales force. Management noted plans to grow its hunting team by more than 20% this year, an investment that could pressure near-term costs while supporting longer-term bookings.
Third, keep an eye on the Education division, where revenue grew 2% in fiscal 2026 to $76.2 million on subscription strength and higher coaching volumes. Improving revenue retention in both Enterprise and Education will be central to the fiscal 2027 bridge. Cost discipline, margin trajectory, and the timing of large multi-year contract signings remain key variables to evaluate in coming quarters. One thing that stands out is how these indicators could shape the next several reporting periods.
Using AI Tools in My Analysis Process
In my research process, I frequently rely on Tickeron's AI Screener to filter opportunities and compare metrics across peers. It streamlines the analysis significantly and helps surface relevant patterns without manual effort.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
FC in downward trend: 10-day moving average moved below 50-day moving average on November 03, 2026
The 10-day moving average for FC crossed bearishly below the 50-day moving average on November 03, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 15 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 88%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FC as a result. In 62 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.
The Moving Average Convergence Divergence Histogram (MACD) for FC turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 34 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 77%.
FC moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
The 50-day moving average for FC moved below the 200-day moving average on October 01, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
The Aroon Indicator for FC entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where FC's RSI Oscillator exited the oversold zone, 27 of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 84%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +0.76% 3-day Advance, the price is estimated to grow further. Considering data from situations where FC advanced for three days, in 193 of 290 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
FC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 2 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating steady price growth. FC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 85 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: FC's P/B Ratio (4.558) is slightly higher than the industry average of (1.252). FC's P/E Ratio (115.533) is considerably higher than the industry average of (9.236). Projected Growth (PEG Ratio) (0.931) is also within normal values, averaging (1.327). Dividend Yield (0.000) settles around the average of (3.575) among similar stocks. P/S Ratio (0.814) is also within normal values, averaging (27.566).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
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a provider of training and consulting solutions
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